Contract Purchase (Choices)
Choices is an innovative finance plan that outs you in the driver’s seat. It gives you the opportunity to drive a new vehicle model as often as you like. Put simply – the luxury of choice. With this unique finance plan, you get to choose an option that suits you best at the end of the agreement period.
You can:
• Make the final payment and take ownership of the vehicle;
• Trade the vehicle in for a new model;
• Extend the agreement period by spreading the cost of the final payment; or
• Simply return the vehicle with no further obligation.
How does choices work?
Choices is really simple. All you do is:
1. Agree on how long you would like to drive the vehicle
2. Determine whether you wish to pay a deposit**
3. Anticipate how much mileage you’ll cover over the contract period
4. Agree on a monthly payment
Benefits of Choices
• Reduced monthly payments
• Flexible end of agreement options:
Make the final payment and take ownership of the vehicle
Trade the vehicle in for a new model
Extend the agreement period by spreading the cost of the final payment
The final payment is agreed and Mercedes-Benz Financial Services carries the risk of final payment**
Return the vehicle with no further obligation
• Opportunity to drive a new vehicle more frequently
• VAT capitalised at outset of agreement
• Finance charges and depreciation are deductible from income tax
• Maximum tax benefit achieved
• Increased balance sheet asset value
**Subject to kilometre and condition clauses
Instalment Agreement
The Instalment Agreement is the traditional way of financing your vehicle of choice. There are no surprises, only predictable and regular monthly instalments.
As a potential customer, there is no mandatory minimum deposit. A deposit however may be required by our Credit Department. What you get out of the deal is a finance package where repayments are payable in regular monthly instalments over an agreed period.
Benefits of Instalment Agreement
• Acquisition of vehicle
• Fixed or variable interest rates
• Repayments over an agreed period
• Tailor-made payment structures
• VAT capitalised at the outset of agreement
• Finance charges and depreciation are deductible from income tax (dependent on the customer profile)
Instalment Agreement with Balloon
Instalment Agreement with Balloon is a simple and effective way for acquiring a vehicle with lower monthly instalments, with a final payment that transfers ownership to you, the customer.
How does it work?
A final payment is negotiated at the outset of the agreement, and the remaining cost, plus interest charges, is then repayable in regular or monthly repayments over an agreed period. When the final payment is made, ownership is transferred to the customer.
Benefits of Instalment Agreement with Balloon
• Lower monthly payments with a final payment – responsibility of buyer
• Acquisition of vehicle – after final instalment
• Fixed or variable interest rates
• Repayments over an agreed period
• Tailor-made payment structures
• VAT capitalised at the outset of agreement
• Finance charges and depreciation are deductible from income tax (dependent on the customer profile).
Lease
Lease a vehicle for an agreed period with the option of ownership.
How does it work?
Tailor-made to suit the needs of the customer, this agreement allows you to lease the vehicle for an agreed period with the option of ownership. Alternatively, the lease may be extended at the end of the agreement period.
Benefits of Leasing
• Option to take ownership of the vehicle or extend the lease at the end of the agreement
• Lease payments are tax deductable
• VAT capitalised at the outset of the agreement
Operating Lease
This rental package is specially designed for the customer who would like to pay for the use of a vehicle, rather than ownership.
How does it work?
After estimating your anticipated mileage, your vehicle is rented to you for an agreed period. At the end of the rental period, the vehicle is simply returned, removing the worry of disposal, and the risk of ownership remains with Mercedes-Benz Financial Services throughout.
Benefits of Operating Lease
• Use of vehicle with option to buy
• Capital expense eliminated and improved cash flow
• Rental fully tax deductable as operating expenses (dependent on customer profile)
• Asset not reflected on the Balance Sheet
• VAT claimable and payable monthly (not capitalised up front)
• No vehicle disposal risk
• Only pay for use of vehicle
• Option to drive a new vehicle more often
• Reduced monthly payment
Private Rental
In an effort to continuously lead ambition, Mercedes-Benz Financial Services introduces Private Rental to you. Designed for the private individual, this product can be structured to meet your specific driving and financing needs, while still ensuring you drive the best for less and more often. Private Rental is a unique product that makes driving your vehicle more persuasive than ever before.
Private Rental is a tailor made rental product for passenger vehicles, which enables you to drive a new vehicle more often.
How does it work?
1. Select the passenger vehicle you would like to drive
2. Select your estimated mileage per year based on the three product options
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Product Option
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Low
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Standard
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Standard Plus
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Maximum Annual Kilometre
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18 000 kilometres
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25 200 kilometres
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Over 25 200 kilometres
(Customer to determine upfront their annual kilometres)
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Contract Term
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Minimum 24 months – Maximum 48 months
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Capitalised Cost Reduction
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The customer has the option to decrease the monthly rentals further by supplying an upfront lump sum amount – Capitalised Cost Reduction.
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End of Contract Option
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Simply return the vehicle
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A penalty fee will be applicable should the customer drive more kilometres than agreed.
3. Select the period which you want to drive the vehicle (between 24 and 48 months)
4. Sign the Private Rental contract
5. At the end of the rental period the vehicle is simply returned, removing the worry of disposal
Benefits of Private Rental
• Capital expense eliminated and improved cash flow
• Rentals fully tax deductable as operating expenses (dependent on customer profile)
• VAT not capitalised up front
• VAT claimable and payable monthly
• No vehicle disposal risk as there is a Guaranteed buy-back on the residual value
• Only pay for the use of the vehicle
• You get to drive a new vehicle more often due to shorter rental agreements
• Reduced monthly payment
FlexiFix
In the move to manage rising expenses and stretch budgets, customers often choose to use fixed rate financing as a means to curb against anticipated interest rate hikes. It is for this reason Mercedes-Benz Financial Services has developed FlexiFix Finance – to allow you to have control over your monthly vehicle repayments. FlexiFix assists in minimising the immediate impact of interest rate increases, whilst the benefit of rate decreases will still be enjoyed when they occur.
FlexiFix enables you to budget better by allowing you to have fixed payments until the penultimate payment. The last payment absorbs all increases, or decreases that may occur with interest rates.
How does it work?
You pay fixed payments for the duration of the term, only the last payment is variable. Using a 60 month contract as an example, the product works as follows:
FlexiFix guarantees you 59 equal monthly repayments. The 60th payment would be variable, that is, any change in interest rate would reflect only in the 60th payments. Therefore, interest rate increases are absorbed by the last payment without affecting the fixed monthly payment. Should there be an interest rate decrease, an automatic decrease in the last payment would take place. Once again, the fixed monthly payments would be unaffected.
Benefits of FlexiFix
• Fixed capped monthly repayments (until the penultimate instalment)
• Better budgeting
• Less concern about the immediate impact of interest rate increases
• Provides certainty and payment guarantee to customers
• Should the customer wish to re-finance the last payment, Mercedes-Benz Financial Services can assist by refinancing this amount on a new agreement for a for an agreed term*
• Unlike fixed rate contracts, FlexiFix enables the customer to benefit from interest rate decreases. Here, an automatic decrease in the last payment would take place. Once again, the fixed monthly payments would be unaffected.
Is this a fixed or variable rate finance product?
This is a variable rate product, which protects you from the immediate impact of interest increases. You will also benefit when interest rates decrease, as your variable last payment decreases accordingly.
Do I keep the vehicle at the end of the contract?
Yes, once all contractual obligations are fulfilled, vehicle ownership passes over to the customer.
Fleet Management Solutions
Customised solutions for seamless mobility
A Daimler Fleet Management, we innovate to resolve problems before they present themselves. That’s because we work with you to understand your business requirement, before we customise your fleet. From passenger cars to custom-built trucks and everything between, Daimler Fleet Management specialises in providing and managing cost effective fleets for government and industry. Our world class processes, empowered and inspired people with the infrastructure to match, enables us to deliver extraordinary customer service and the highest levels of operational excellence.
Low Risk at Fixed Costs – focus on your core business and we’ll focus on the fleet management
For an agreed monthly rental, the debis Full Maintenance Lease Solution will provide you with a fleet of vehicles that will.